Each payment consists of interest and repayment of

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Unformatted text preview: today (the PV of the annuity), which you then will repay by making equal periodic payments (the cash flows associated with the annuity) for a fixed number of periods. – Each payment consists of interest and repayment of the principal. Example: Present Value of an Annuity (1) - Your younger sister is starting college today. Your grandparents promise to give her $1,000 at the end of each year while she goes to college (maximum four years)....
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This document was uploaded on 03/17/2014 for the course COMM 298 at University of British Columbia.

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